CarTrade, an online market platform for buying and selling cars, has decided to make it public. The company recently filed an initial public offering (IPO) application by submitting a Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Commission of India.
The company plans to sell 1,23,54,811 shares (OFS) through its IPO. DRHP was released by Axis Capital, announced as a leadbook running manager for equity equity issuance. Other investment banks to sign up include Kotaku Mahindra Capital, Nomura and Citigroup Capital Markets.
CarTrade has been a relevant name in the automotive trading market for many years and has succeeded in making it difficult in highly competitive markets. IPOs help companies achieve new goals, especially when the expansion of the automotive market is constrained by the COVID 19 pandemic.
Through this move, CarTrade wants to raise about 2,000 chlores (or £ 20 billion). Details on the price range of equity stocks have been revealed by Axis Capital, with a par value of £ 10 per share.
According to the DRHP submission prior to the IPO, the platform acknowledges that it reported revenues in excess of 318 chlores at the consolidated level. These include a net profit of 31.2 chlores. For the nine-month 2021 fiscal year (FY21), the company reported revenue of 189.6 chlores and net profit of 85 chlores last December.
When CarTrade goes public, many of its current shareholders will offload (or give up) their shares. Notable names among these include Temasek, Warburg Pincus, March Capital / Springfield Venture International (sold 11,24,700 shares) and JP Morgan (offloaded 16,08,324 shares). Temasek / MacRitchie Investments and Warburg Pincus / Highdell Investments will each sell 35,68,217 shares. One of the company’s promoters, Bina Vinod Sanghi, will also offload 1,83,333 shares. The total number of shares scheduled to be offloaded make up approximately 27% of the paid-in equity capital after the company’s offer.
Launched by Vinay Sanghi himself in 2009, the platform has continued to grow, reaching more than 80 cities across the country and selling about 1 million vehicles annually as of last year.
CarTrade has made impressive moves in the Indian market during its recent 2.5 chlore funding and is very close to the Unicorn mark (valued at $ 1 billion).
CarTrade goes public and wants to raise 2,000 chlores at IPO
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